My stepson's car was written off - but he won't be offered enough money to cover the outstanding loan?

My stepson had a fairly low speed accident on a roundabout, where the third-party hit him on the nearside front, while in the wrong lane for his chosen exit. The accident was not his fault and his insurance company wants to write the vehicle off. He has finance on the vehicle and likely as not won't be offered sufficient to cover the outstanding loan. What can he do to prevent being out of pocket? If his garage can repair the car safely and reasonably, is he entitled to choose this as an option?

Asked on 24 October 2018 by Mark Hoare

Answered by Honest John
Always work from the facts. Establish the market value and establish the cost of repair. If the cost of repair is less than the market value, insist on it being repaired. Do not accept the vehicle being a total loss, no matter what they say. Your contract advises that they indemnify you up to the market value. If the repair cost is more than the market value and if your son owes more than the car is worth, then unfortunately, that is down to him, unless he has GAP insurance. If buying a car on finance, and having more than 50% as finance, it's useful to consider GAP policy.
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